Mutuum Finance (MUTM) emerges as major contender for DeFi throne
Since Solana (SOL) crossed the $100 mark in 2024, interest in SOL has seen a dramatic increase.
However, in 2025, SOL has many investors disappointed as the price has stagnated around the $170 mark.
With investors looking to make massive gains, they have turned to Mutuum Finance (MUTM), which makes crypto observers describe the next “king of DeFi.”
Looking at the ongoing presale, this sentiment is justified.
So far, over $9.4 million worth of presale tokens have been sold.
The presale is currently in phase 5, with each token selling for $0.03.
In the previous phase, the token price was $0.025 and has since increased by 20%.
The current phase of the presale represents the last chance to make a guaranteed 100% ROI based on the listing price of $0.06.
In the upcoming phase 6, the token price will increase by 16,67% to $0.035, while the guaranteed ROI will dip to 71.43%.
So far, over 11,300 unique buyers have taken part in the presale, and over 9% of the phase 5 presale tokens have been sold.
The Mutuum Finance (MUTM) fundamentals
At the core of Mutuum Finance (MUTM) is its decentralized non-custodial liquidity protocol that allows users to interact as liquidators, borrowers, or lenders.
Lenders supply the liquidity, which borrowers can access via overcollateralized loans.
Meanwhile, liquidators help to maintain the overall health of the ecosystem, which is governed by the stability factor.
The role of lenders
Lenders’ primary role is to supply liquidity either through P2P or P2C.
The peer-to-contract (P2C) is the primary means by which lenders and borrowers interact.
Funds contributed by lenders can be accessed using collateral in the same contract, without the need for individual loan matching.
Once lenders deposit funds in a pool, they receive an annualized percentage interest yield on their assets.
The pool’s utilization rate determines the rate; as more borrowers access the pool, it causes the yield to rise, which encourages more lenders to deposit their assets.
Lenders can also use the P2P to earn interest. In these pools, which are governed in separate smart contracts, lenders and borrowers engage in discussions about their terms.
They can agree on the interest rate, the loan period, and many other factors.
The mode is reserved for highly volatile assets with low liquidity, like the FLOKI meme coin.
It is kept separate from the P2C pools to ensure that the high volatility of assets in this mode does not stabilize the overall protocol.
The role of borrowers
Borrowers provide collateral that is needed for loans in the ecosystem.
The interest rate that borrowers pay is governed by supply and demand dynamics.
Borrowers have the option to choose between stable or variable rates.
With stable rates, they have a better understanding of their repayments.
Once they repay a loan, the borrowed tokens return to the pool, and accrued interest flows into the revenue mechanism.
Borrowers can also use collateral to mint stablecoins on Mutuum Finance (MUTM).
The stablecoin’s value will algorithmically be maintained at the value of the USD.
The stablecoin will open up earning opportunities for its holders through arbitration to maintain this value.
The role of liquidators
Liquidators are another role within Mutuum Finance (MUTM) where participants can make a stable income.
The entire ecosystem is maintained through a stability factor, which monitors the current collateralization of a loan against its value.
If the collateral’s value falls below a certain threshold, the position is liquidated.
Liquidators in the protocol can then purchase the debt at a discount and make a small profit in the process.
At the same time, their actions help to keep bad debt out of the ecosystem.
Incentives to stake on Mutuum Finance
From the above, all participants stand to benefit from the Mutuum Finance (MUTM) ecosystem.
There are also numerous incentives in the ecosystem, including a profit-sharing mechanism.
In the mechanism, profits from the protocol will be used to buy MUTM tokens on the open market, which will be redistributed to stakers as rewards for maintaining the protocol’s security.
With a robust lending protocol, coupled with a robust profit-sharing mechanism, Mutuum Finance is well-positioned to claim the DeFi throne.
Recently, it passed a Certik security audit, which has boosted trust in the project and is poised to accelerate the pace of the ongoing presale.
At the current price of $0.03 per token, this could be your best opportunity to join this DeFi project.
For more information about Mutuum Finance (MUTM), visit the links below:
Website: https://www.mutuum.com/
Linktree: https://linktr.ee/mutuumfinance
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